Anyone bought a house from someone who has gone bankrupt and had their house repossessed?

[cheapandcheerful]

Or should we just walk away now?

We really think it's the perfect house for us and we're in no rush.

BUT we have a buyer waiting and the situation is just soooo complex. The guy is also divorced so his ex-wife owns half of it too. Urgh.

[LegoCaltrops]

Once it's been repossessed, the bank 'own' it, so presumably their title to sell would overreach any claim the ex wife has? Has it already been repossessed or is it just a possibility, with him pressuring you to hurry up with the purchase?

[AuntySib]

Ask your solicitor to confirm what has to happen before you could exchange. Agree that if he has gone bankrupt, then trustee in bankruptcy owns it, and therefore has the right to sell, rather than the original owner.

Your solicitor should be able to advise, and you might need to press them to ask sellers solicitors about timescales. Ask them to be specific about dates and anything which might hold things up.

Check that the property is properly secured; I have known situations where aggreived bankrupt has tried to get back into the property and remove/destroy fittings.

[IssyStark]

As others have said, if it is repossessed it will be the mortgage company that owns it and has the right to sell it. My sister bought a repossessed house - they are often sold via auction or for a (good value) fixed price

[wowfudge]

First of all you need to clarify the situation. A repossession by the mortgage company would surely mean he isn't living there are more?

That is different from the trustee in bankruptcy seizing the asset in order to liquidate it and pay his creditors.

I can imagine the TiB (could be the official receiver) will allow him to live there until the sale completes.

Get advice from a solicitor asap if you want to proceed.

[Greencheese]

We just bought our house that was in receivership. We got a bargain! The estate agent selling it was really great and even though technically worked for the vendor, as they were a big faceless company (the receivership company I mean) they pushed them to lower the price for us. Everyone just wanted rid and we were willing to buy. Don't discount it just yet. Good luck.

[hereandtherex]

Yep. Bank should have retook possesion.

Mandatory things to do:

• Change all door and window locks.
  
• Get a gas engineer to check the boiler and heating.
  
• Expect stuff to be broken.
  

Repos tend to drive the person nuts. They'll cut off their nose to spite their face.

I've seen one where they'd sledge-hammered the toilet.

[RaphaellaTheSpanishWaterDog]

Definitely be prepared for the person that's been repossessed to have gutted the place OP - a couple of years back we turned up to collect an eBay purchase (a free-standing furniture item, not a fixture/fitting!) from a top-floor flat in a Victorian conversion, only to discover no floorboards or skirting in most of the rooms.

On enquiring about this DH was told by the guy that they were about to be repossessed and as a result he's stripped out all the timber from the flat and listed it for sale on eBay - yikes!!!

The two of them had to tiptoe across the joists to get the item out.....

[Greencheese]

Ours decided to open up all the radiators so when we turned them on they spurted water everywhere. That was nice of them.

[cheapandcheerful]

Thanks everyone...we've decided to run a mile!

[letsleepingbabieslie]

Now either read the book or watch the film 'house of sand and fog'. Brilliant, heartbreaking, gut wrenching story (fictional) based on this premise. I haven't read or watched it for years but it still haunts me as one of the greatest tragedies i ever read. Enjoy!

[SophieBarringtonWard]

Hmm, I was going to suggest caution but not the horror stories others have posted!

We bought a repo, & while it was in fairly bad nick it was simple stuff you might get in any house - needed new bathroom, new kitchen, that sort of thing. All floorboards, radiators and toilets were present and correct. Love our house & paid a good whack under the going rate for it.